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Friday, August 20, 2021

The Cargo Congestion Los Angeles / Long Beach -- California -- August 20, 2021

I think this is one of the bigger stories in business news this week, re-posting:

Cargo ships again idling off jammed southern California ports: again, WSJ

If that's a bit dry, one can get a more interesting read at ZeroHedge: California congestion nears high, east coast gridlock worsens:

It’s only mid-August - the early days of peak shipping season - but the record for container ships anchored off California is already on the verge of being broken. Port congestion is simultaneously building along the East Coast, with anchorage numbers off Georgia well into the double digits and, for the first time this year, a growing queue offshore of the Port of New York and New Jersey.

California congestion previously peaked in the first quarter. On Feb. 1, the Marine Exchange of Southern California reported an all-time-high 40 container ships at anchor in San Pedro Bay, awaiting berths in Los Angeles or Long Beach. The highest number of container ships in the entire port complex, including those at anchor and at berth — 67 — was set on January 28, 2021.

On Friday (last week, August 13, 2021), there were 125 ships of all types (including tankers and cruise ships) either at berth or anchor in Los Angeles/Long Beach. That’s a new record. The Q1 high was 113. 

On Saturday (August 14, 2021), there were 68 ships of all types at anchor, yet another record. There were 66 container ships either at berth or waiting offshore, just one short of the all-time high. And there were 37 container ships waiting offshore, three short of the February peak.

All regular and emergency anchorages were full, forcing the overflow to drift in designated areas. As of Sunday, five container ships were drifting off Santa Catalina Island.

But look at this and think about this:

A key variable for the weeks ahead involves the COVID-induced terminal closure in Ningbo, China. As of Monday, the affected terminal had been closed for six days. When COVID curtailed throughput in Yantian, China, in June, it gave Los Angeles/Long Beach a brief reprieve from inbound volume, reducing congestion temporarily, then subsequently increasing congestion as delayed Yantian cargo belatedly arrived.

2 comments:

  1. Simple accordion affect. What I see from my couch as the growing issue is this.
    With that much goods at anchor, at best speed now fast can the shipyard turn it around, are there enough semi trucks to keep up and even with air freight are there enough trucks/drivers at the other end.
    Am seeing empty shelves at local Walmart now for no good reason.
    This accordion will be stretched beyond wafer thin before it settles (if it ever does)

    ReplyDelete
    Replies
    1. I think we are the very few actually paying attention to this. This is a huge story. A lot of this stuff was ordered months ago, retailers knowing there were would be a logjam in the ports and they need their stuff for Christmas.

      Truckers are going to do very, very well. Good for them. Well deserved.

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